How to install the Win7 system on a virtual machine:
1. Open parallels Desktop (from the Application folder) and select "File" > "new".
2. If you have a Windows Setup disk, insert a DVD drive. If you have a USB memory with Windows, you can connect the storage to the MAC.
3. Click Install Windows or other operating system from DVD or mirror files.
4.Parallels Desktop scans and enumerates the operating systems that can be installed.
Figure I: Scanning the operating system
5. If the Windows installation source does not automatically appear, click "Local Lookup" to browse manually, and you can browse from the following sources:
DVD: If you have a Windows DVD, insert a DVD drive. Once you have detected Windows, click Continue. If your Mac does not have a DVD drive, you can use Apple SuperDrive to use the other DVD drivers for your Mac from a remote disk, or to create a mirrored file from a CD.
Mirrored file: If you have a Windows mirrored file, click the mirrored file and drag and drop mirroring to the Parallels wizard window. Once you have detected Windows, click Continue.
USB driver: If there is a Windows bootable USB installer, click on the USB driver and connect the driver to the MAC. Once you have detected Windows, click Continue.
6. Verify that the quick Install is selected.
Note: If you uncheck "Quick Install", you will need to install parallels Tools separately after installation to allow seamless operation between Windows and Mac OS x.
Figure II: Quick Install
7. Choose how you want to use Windows.
As the Mac:windows program appears on the Mac desktop as a Mac application. Documents and media files from Mac OS X and Windows are consolidated in your Mac.
As Pc:windows desktop and applications appear in a separate window, they are independent of the MAC application. You can drag and drop targets between Windows and Macs.
8. From the Location menu, select the location where you want to save Windows.
By default, Parallels Desktop saves Windows in the Documents > parallels folder. To allow all users of your computer to access Windows, select Share with other users of your Mac.
Figure Three: Save location
9. If you want to pre-set some parameters, such as how much memory Windows uses or whether Windows will run automatically when you open parallels Desktop, select Set up before installation. You can also adjust these settings after the operating system installation is complete.
10. Click Continue and the new assistant will begin to install Windows.
After Windows Setup is complete, you can start Windows by opening a Windows program or by clicking the power button in the Parallels Virtual machine list.
Important: When you first start Windows, Parallels Tools are installed to allow seamless operation between windows and Mac OS x. Once the parallels Tools installation completes, you will be prompted to restart Windows.
When you install Windows, parallels Desktop creates an administrator account with a blank password. It is recommended that you change this password after the installation is complete.
Note: You can also install Windows from a disk image file that installs the CD. Just select the disk image file in step 4th above. Parallels Desktop supports ISO, DMG, CUE, and CCD disk mirroring.